We recently compiled a list of 10 companies reflect the Dow Jones decline on Monday. In this article, we’ll take a look at where SoundHound AI Inc. (NASDAQ:SOUN) ranks in relation to other stocks.
Ten companies began trading this week, reflecting the decline in the Dow and a series of catalysts dampening investor sentiment. In this article, let’s explore the reasons for their decline.
To determine Monday’s top losers, we considered only stocks with at least $2 billion in market cap and $5 million in daily trading volume.
A software engineer focused on a computer screen, writing code to create a conversational assistant.
Shares of SoundHound AI ended a two-day winning streak, closing down 3.54% at $19.89 each as investors resorted to profit-taking.
Investors sold their positions after Friday’s announcement that rival Cerence had expanded its partnership with tech giant Nvidia Corp., analysts said. (NVDA) to improve its CaLLM (Cerence Automotive Large Language Model) family of language models.
The collaboration aims to accelerate the development and deployment of generative AI for automotive applications, integrating cloud-based and embedded solutions such as CaLLM Edge.
Despite this decline, the outlook for SoundHound remained strong, fueled by the booming AI sector, which allowed for more bullish coverage.
Last week, SoundHound AI got a Buy rating and a higher price target from HC Wainwright, going from $8 per share to $26 apiece.
Although Wainwright analysts noted that recent valuation gains were primarily due to market enthusiasm, they believed the company would perform well enough to support its growth-dependent valuation.
Overall SOUND ranks 10th on our list of stocks that collapsed today. While we recognize the potential of SOUN as an investment, our conviction lies in the belief that AI stocks have more promise in terms of higher returns and in a shorter time frame. If you’re looking for an AI stock that’s more promising than SOUN but is trading at less than 5x earnings, check out our report on the cheapest AI stock.
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Disclosure: None. This article was originally published on Initiated Monkey.